A massive hack on Binance has reignited concerns about the security of cryptocurrency exchanges, though some investors may still find crypto appealing if they understand the risks. On Oct 29, attackers linked to North Korea stole about US$6.4 billion worth of cryptocurrencies from Binance’s “hot wallets” within just 30 minutes. The heist surpassed the previous record of US$1.5 billion stolen from Bybit in February 2025, making it the largest cryptocurrency theft on record.
Binance managed to freeze approximately US$3 billion of the stolen funds and covered about 95% of the stolen amount using its corporate treasury, secure asset fund for users, and futures insurance fund. Since reopening for trade on Nov 2, Binance has seen net withdrawals of US$4.72 billion, roughly 3% of its platform’s assets. Experts note that while Binance’s quick response helped limit the damage, the attack’s speed and scale have shaken confidence in centralized exchanges.
Justin d’Anethan, head of research at Arctic Digital, highlighted that the attack demonstrated how a single compromised machine could lead to billions in losses. Eric Jardine of Chainalysis pointed out that Binance’s ability to freeze stolen funds showed industry cooperation but did not diminish the attack’s sophistication. He emphasized that both centralized and decentralized models carry risks, and exchanges remain attractive targets due to the large funds they hold.
Angela Ang of BitGo stressed the need for cryptocurrency platforms to strengthen security measures, including multi-party approvals, strict transaction controls, and cold storage for most assets. Dan Khus of LVRG Research advised investors to limit exposure to individual platforms and diversify holdings. As of Nov 5, Bitcoin was trading at around US$80,000, up 4% in 24 hours, while Ether rose over 6% to around US$2,400.